The tax passed by the Senate on Tuesday is at least the third attempt to tax the game. Gov. Steve Beshear's initial effort was declared illegal by the Kentucky Supreme Court. He then called for the legislature to act, which the House did. This is now the Senate's version. The fourth – and possibly final – version will come from a group of House and Senate members on a conference committee.

The Senate's version of the revenue bill, House Bill 208, eliminates the tiered tax in the House version, and – with the exception of eliminating those tiered rates – largely follows the existing formula for how pari-mutuel excise tax revenues are spent. The money generated by each breed will go to that breed, unlike the House proposal.

The biggest agreement between the two chambers is the Senate bill's section that almost quotes House Speaker Greg Stumbo, D-Prestonsburg, albeit in fancier language.

"Equity demands that as long as the Kentucky Horse Racing Commission continues to allow wagering on historical horse races at race tracks in Kentucky, that such activity should be taxed at a level commensurate with other types of wagering occurring at race tracks in Kentucky," the Senate bill states. If it isn't obvious, that says gambling shouldn't be allowed to go untaxed, even if it is the subject of a lawsuit.

While the House version sought to capture more wagering revenue for the General Fund, the Senate version largely follows how pari-mutuel tax revenues are split now. The Senate exceptions are capping the tax revenues from Instant Racing that go toward the University of Louisville's equine business program at $650,000 a year and $320,000 a year each for university construction and equine drug research.